Just a refresher for you n00bs out there: I made the bulk of my 2015 returns long oil and gas stocks in the beginning of the year. The moves were outrageous and I was early to the trade. After selling them, I promised to steer clear of the sector until December, which of course I violated and ended up losing heinous amounts of dollars in SLCA.
At any rate, the reason why I was bullish on crude last year and why I’m considering it now is seasonality. Have a look at our Independent Oil and Gas sector in Exodus, with custom tailored seasonal stats. You will not find this data anywhere else.
Over the course of the year, the sector has been ripped to shreds, as you readily know.
Valuatons are at the cheapest in over a decade.
And, if we’re gonna play it like last year, you’ll want to be long the stocks with the largest short percentages. All of these stocks will soar, hardly any will post negative results. If this industry runs, take your trade, don’t get attached to them, and then get the hell out.
Here are the stocks most heavily shorted in the space.
Last year I played SN in a big way. I’m not sure which one I like now, so stay tuned.
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SWN